Saudi Arabia: Southern Province Cement Company (SPCC) registered revenues of US$76.4m in the second quarter of 2021, a year-on-year fall of 15.3% compared to US$90.2m a year earlier. SPCC’s revenue was impacted by a 10.9% year-on-year fall in cement sales volumes, which came to 1.4Mt/yr for the quarter. SPCC’s gross and operating profits fell by 27.2% and 28.3% respectively year-on-year. The fall in profitability was at the back of lower volume and the resulting fall in operating leverage.
Cement volumes across the whole of Saudi Arabia fell grew by 21.3% year-on-year, while the Southern region saw sales fall by 5.1% year-on-year. Thus, SPCC underperformed relative to its peers by this metric.
Market Analyst Al Rajhi Capital said “Going forward, we expect cement volumes of SPCC to remain under pressure in the third quarter of 2021 on the back of lower construction activity due to uncertainties relating to the new building permit norms and shortage in labour.”
